Chanticleer Holdings Inc (HOTRW) saw its loss widen to $1.73 million, or $0.08 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.43 million, or $0.07 a share. Revenue during the quarter went down marginally by 2.49 percent to $9.86 million from $10.11 million in the previous year period. Operating margin for the quarter stood at negative 10.03 percent as compared to a negative 8.96 percent for the previous year period.
Operating loss for the quarter was $0.99 million, compared with an operating loss of $0.91 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $288.82 million compared to negative $229.69 million in the prior year second quarter.
Mike Pruitt, chairman and chief executive officer of Chanticleer, commented, "We are beginning to accelerate growth of company stores and are also receiving substantial interest in Little Big Burger franchising opportunities. Store revenues were impacted in January and February by inclement weather that hampered customer traffic in our Pacific Northwest locations. We saw improved store performance in March, which continued during April. The financing we announced last week strengthens our balance sheet providing a stronger foundation to drive growth in our high performing brands as we shift our focus from internal integration projects to organic growth and franchising initiatives."
Operating cash flow turns negative
Chanticleer Holdings Inc has spent $0.57 million cash to meet operating activities during the quarter as against cash inflow of $0.14 million in the last year period. The company has spent $0.45 million cash to meet investing activities during the quarter as against cash outgo of $0.33 million in the last year period.
Cash flow from financing activities was $1.02 million for the quarter as against cash outgo of $0.13 million in the last year period.
Cash and cash equivalents stood at $0.28 million as on Mar. 31, 2017, down 69.36 percent or $0.63 million from $0.91 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Chanticleer Holdings Inc was negative $4.79 million on Mar. 31, 2017 compared with negative $5.25 million on Mar. 31, 2016. Current ratio was at 0.25 as on Mar. 31, 2017, down from 0.39 on Mar. 31, 2016.
Days sales outstanding went down to 6 days for the quarter compared with 9 days for the same period last year.
Debt increases substantially
Chanticleer Holdings Inc has witnessed an increase in total debt over the last one year. It stood at $10.19 million as on Mar. 31, 2017, up 21,724.36 percent or $10.14 million from $0.05 million on Mar. 31, 2016. Total debt was 30.67 percent of total assets as on Mar. 31, 2017, compared with 0.11 percent on Mar. 31, 2016. D
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